Estonia to Raise Tobacco Excise Duty

Estonia’s Riigikogu passed a bill to raise excise duties on alcohol and tobacco products ahead of its second reading, according to ERR.

The Alcohol, Tobacco, Fuel and Electricity Excise Duty Act and the Act Amending the Alcohol, Tobacco, Fuel and Electricity Excuse Duty Act and Other Acts had 57 votes in favor and 35 votes against.

The bill will increase alcohol excise duty and tobacco excise by 5 percent per year between 2024 and 2026.

An amendment to the bill put forth before the second reading states that maximum retail prices of cigars and cigarillos will be reported with a precision of $0.10 instead of $0.50, as previously outlined, if the cost is €10 ($10.91) or less.

The bill also removes the excise duty increases on special diesel fuel in order to help keep Estonian farmers competitive.

The bill passed its first reading on May 17. On June 8, the coalition decided to tie the bill to a vote of confidence to avoid a filibuster.